Bangiya Sanskritik Sangha, ... vs Assessee

ITA No.1514/Hyd/2014 : Assessment year 2014-15

Bangiya Sanskritik Sangha, V/s. Director of Income- Secunderabad tax(Exemption), Hyderabad

(PAN - AACAB 3600 N )

(Appellant) (Respondent)

Appellant by : Shri Amit Kumar Dutta

Respondent by : Smt. G. Aparna Rao DR

Date of Hearing 05.2.2015 Date of Pronouncement 11.2.2015

ORDER

Per P.M.Jagtap, Accountant Member :

This appeal filed by the assessee is directed against the order of the learned Director of Income-tax(Exemption), Hyderabad dated 31.7.2014, whereby he rejected the application filed by the assessee for registration under S.12AA of the Act.

2. The assessee in the present case is a trust which filed an application in Form No.10A on 8.1.2014, seeking registration under S.12AA of the Act. From the perusal of the objects of the assessee trust as given in the Memorandum of Association, the learned Director of Income-tax(Exemption) found that the objects of the assessee trust are both religious and charitable. According to him, a combined reading of the provisions of S.12AA(1) read with S.12A(1)(aa) and 11(1)(a) of the Act would make it clear that a trust in order to be eligible for registration under S.12AA should 2 ITA No.1514/Hyd/2014 Bangiya Sanskritik Sangha, Secunderabad

have wholly charitable objects or wholly religious objects and a trust having both charitable and religious objects at the same time is not eligible for registration under S12AA of the Act. Accordingly, the application filed by the assessee for registration under S.12AA was rejected by the learned Director of Income-tax(Exemption). Aggrieved by the order of the learned Director of Income- tax(Exemption), assessee trust has filed this appeal before the Tribunal.

3. We have heard the arguments of both the sides and also perused the relevant material on record. As agreed by the learned representatives of both the sides, the issue involved in the present appeal is squarely covered in favour of the assessee inter alia by the decision of the coordinate bench of this Tribunal in the case of Rehoboth mission V/s. Director of Income-tax(Exemption) (42 SOT 149), wherein it was held that there is nothing in the language of the relevant provisions of the Act to suggest that an institution with mixed objects is precluded from getting registration under S.12AA of the Act. It was held that a trust which is only for religious purposes is excluded and debarred from getting registration under S.12AA of the Act, and trust whose objects are charitable as well as religious cannot be denied registration under S.12AA. Respectfully following the decision of the coordinate bench of the Tribunal (supra), we set aside the impugned order of the learned Director of Income-tax(Exemption) declining to grant registration under S.12AA and direct that such registration be granted to the assessee trust.

3 ITA No.1514/Hyd/2014 Bangiya Sanskritik Sangha, Secunderabad

4. In the result, appeal of the assessee is allowed.

Order pronounced in the court on 11th February, 2015

Sd/- Sd/-

(Asha Vijayaraghavan) (P.M.Jagtap) Judicial Member Accountant Member

Dt/- 11th February, 2015 Copy forwarded to:

1. Bangiya Sanskritik Sangha, H. No.6-1-133/23, Brooke Bond Colony, Padmarao Nagar, Secunderabad

2. Director of Income-tax(Exemption), Hyderabad

3. Dy. Director of Income-tax(Exemption) III, Hyderabad

4. Departmental Representative, ITAT, Hyderabad.

B.V.S